1935 (6) TMI 15

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.... 891. In this case, the appellant Baidyanath Biswas, Managing Director of the Federal Insurance Co., Ltd., was charged under Section 282, Indian Companies Act, with having prepared a false balance sheet. The section reads as follows : "Whoever in any return, report, certificate, balance sheet or other document, required by or for the purposes of any of the provisions of this Act, wilfully makes a....

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....e accounts as expenditure in fact the revenue accounts would have shown a loss of over Rs. 1,400. For the appellant it has been maintained that these being initial heavy expenditure charges, the appellant was entitled to show them in this accounts in the way in which he has done. But the prosecution evidence is to the effect (and this is supported by authority) that the initial expenditure which ....

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....value when the auditor himself admits that the account is not correct. He excuses himself in these terms: "Had the liabilities of the company been all properly disclosed to me, this life fund would have been washed out. There would have been a debit balance on the other side. I was shown entries in the books and on the basis thereof I certified the balance sheets. All the facts had not been discl....

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....tatement as regards expenditure. It is not necessary that the statement should be such as to deceive any one or that it should even be dishonestly made. Considering all the circumstances of the present case and the fact that the accused has already been for a period of some months in jail, we think that the remainder of the sentence should be set aside as also the sentence of fine; and we order a....